Dorian LPG Ltd. Announces First Quarter Fiscal Year 2020 Financial Results and $50 Million Stock Repurchase Program

STAMFORD, Conn., Aug. 7, 2019 /PRNewswire/ -- Dorian LPG Ltd. (NYSE: LPG) (the "Company," "Dorian LPG," "we," and "our"), a leading owner and operator of modern very large gas carriers ("VLGCs"), today reported its financial results for the three months ended June 30, 2019.

Highlights for the First Quarter Fiscal Year 2020

    --  Revenues of $61.2 million and Daily Time Charter Equivalent ("TCE")((1))
        rate for our fleet of $29,671 for the three months ended June 30, 2019,
        compared to revenues of $27.6 million and TCE rate of $16,553 for the
        three months ended June 30, 2018.
    --  Net income of $6.1 million, or $0.11 earnings per basic and diluted
        share ("EPS"), and adjusted net income((1)) of $12.1 million, or $0.22
        adjusted diluted earnings per share ("adjusted EPS"),((1)) for the three
        months ended June 30, 2019.
    --  Adjusted EBITDA((1)) of $38.4 million for the three months ended June
        30, 2019.

((1) )TCE, adjusted net income, adjusted EPS and adjusted EBITDA are non-U.S. GAAP measures. Refer to the reconciliation of revenues to TCE, net income to adjusted net income, EPS to adjusted EPS and net income to adjusted EBITDA included in this press release.

Repurchase Program

    --  On August 5, 2019, our Board of Directors authorized the repurchase of
        up to $50 million of our common stock through the period ended December
        31, 2020.

John C. Hadjipateras, Chairman, President and Chief Executive Officer of the Company, commented, "Our EBITDA is up over sevenfold from last year's quarter, and our realized TCE nearly doubled compared to the same time period last year. Since the majority of the voyages booked during the quarter are typically performed in the following quarter, we expect the current quarter's results to show an even greater improvement, assuming no significant market change during the quarter. On the back of the strong market, our board authorized a $50 million stock repurchase program, underscoring our commitment to a sensible capital allocation program. We believe that positive market fundamentals and the continued success of our people to contain costs and optimize operating efficiencies will enable us to generate good returns to our shareholders."

First Quarter Fiscal Year 2020 Results Summary

Net income amounted to $6.1 million, or $0.11 per share, for the three months ended June 30, 2019, compared to a net loss of $(20.6) million, or $(0.38) per share, for the three months ended June 30, 2018.

Adjusted net income amounted to $12.1 million, or $0.22 per share, for the three months ended June 30, 2019, compared to an adjusted net loss of $(22.3) million, or $(0.41) per share, for the three months ended June 30, 2018. Net income for the three months ended June 30, 2019 is adjusted to exclude an unrealized loss on derivative instruments of $6.1 million. Please refer to the reconciliation of net income/(loss) to adjusted net income/(loss), which appears later in this press release.

The $34.4 million favorable change in adjusted net income/(loss) for the three months ended June 30, 2019, compared to the three months ended June 30, 2018, is primarily attributable (i) to an increase of $33.5 million in revenues, (ii) decreases of $1.2 million in general and administrative expenses, $0.7 million in interest and finance costs, and $0.6 million in vessel operating expenses, (iii) professional and legal fees related to the BW Proposal (defined below) of $0.5 million that did not recur, and (iv) a favorable change of $0.2 million in realized gain on derivatives, partially offset by (v) increases of $2.1 million in charter hire expenses and $0.2 million in voyage expenses.

The TCE rate for our fleet was $29,671 for the three months ended June 30, 2019, a 79.2% increase from a TCE rate of $16,553 from the same period in the prior year, primarily driven by increased spot market rates along with a reduction of bunker prices. Please see footnote 6 to the table in "Financial Information" below for information related to how we calculate TCE. Total fleet utilization (including the utilization of our vessels deployed in the Helios Pool) increased from 83.6% in the quarter ended June 30, 2018 to 98.4% in the quarter ended June 30, 2019.

Vessel operating expenses per day decreased to $8,052 in the three months ended June 30, 2019 from $8,334 in the same period in the prior year. Please see "Vessel Operating Expenses" below for more information.

Revenues

Revenues, which represent net pool revenues--related party, time charters, voyage charters and other revenues earned by our vessels, were $61.2 million for the three months ended June 30, 2019, an increase of $33.6 million, or 121.3%, from $27.6 million for the three months ended June 30, 2018. The increase is primarily attributable to an increase in average TCE rates and fleet utilization. Average TCE rates increased from $16,553 for the three months ended June 30, 2018 to $29,671 for the three months ended June 30, 2019, primarily as a result of higher spot market rates during the three months ended June 30, 2019 as compared to the three months ended June 30, 2018 along with a reduction in bunker prices. The Baltic Exchange Liquid Petroleum Gas Index, an index published daily by the Baltic Exchange for the spot market rate for the benchmark Ras Tanura-Chiba route (expressed as U.S. dollars per metric ton), averaged $62.337 during the three months ended June 30, 2019 compared to an average of $26.390 for the three months ended June 30, 2018. The average price of heavy fuel oil (expressed as U.S. dollars per metric tonnes) from Singapore and Fujairah decreased from $433 during the three months ended June 30, 2018 to $414 during the three months ended June 30, 2019. Our fleet utilization increased from 83.6% during the three months ended June 30, 2018 to 98.4% during the three months ended June 30, 2019.

Charter Hire Expenses

Charter hire expenses for the vessel that we charter in from a third party were $2.1 million for the three months ended June 30, 2019. No such costs were incurred during the three months ended June 30, 2018.

Vessel Operating Expenses

Vessel operating expenses were $16.1 million during the three months ended June 30, 2019, or $8,052 per vessel per calendar day, which is calculated by dividing vessel operating expenses by calendar days for the relevant time-period for the vessels that were in our fleet. This was a decrease of $0.6 million, or 3.4%, from $16.7 million for the three months ended June 30, 2018. Vessel operating expenses per vessel per calendar day decreased by $282 from $8,334 for the three months ended June 30, 2018 to $8,052 for the three months ended June 30, 2019. The decrease in vessel operating expenses for the three months ended June 30, 2019, when compared with the three months ended June 30, 2018, was primarily the result of a $0.5 million, or $255 per vessel per calendar day, decrease in repairs and maintenance costs.

General and Administrative Expenses

General and administrative expenses were $6.7 million for the three months ended June 30, 2019, a decrease of $1.2 million, or 15.0%, from $7.9 million for the three months ended June 30, 2018. The decrease was due to reductions of $0.8 million in cash bonuses to certain employees, $0.3 million in stock-based compensation, and $0.1 million in other general and administrative expenses. The reduction in cash bonuses to certain employees was due to a shift in the timing of approvals during the three months ended June 30, 2019 compared to the prior year period.

Professional and Legal Fees Related to the BW Proposal

In 2018, BW LPG Limited and its affiliates ("BW") made an unsolicited proposal to acquire all of our outstanding common stock and, along with its affiliates, commenced a proxy contest to replace three members of our board of directors with nominees proposed by BW. BW's unsolicited proposal and proxy contest were subsequently withdrawn on October 8, 2018 (the "BW Proposal"). Professional (including investment banking fees) and legal fees related to the BW Proposal were $0.5 million for the three months ended June 30, 2018. No such costs were incurred during the three months ended June 30, 2019.

Interest and Finance Costs

Interest and finance costs amounted to $9.7 million for the three months ended June 30, 2019, a decrease of $0.7 million, or 6.5%, from $10.4 million for the three months ended June 30, 2018. The decrease of $0.7 million during this period was due to a decrease of $0.6 million in interest incurred on our long-term debt, primarily resulting from a decrease in average indebtedness, and a reduction of $0.1 million in amortization of deferred financing fees. Average indebtedness, excluding deferred financing fees, decreased from $768.8 million for the three months ended June 30, 2018 to $707.9 million for the three months ended June 30, 2019. As of June 30, 2019, the outstanding balance of our long-term debt, net of deferred financing fees of $13.3 million, was $680.8 million.

Unrealized Gain/(Loss) on Derivatives

Unrealized loss on derivatives was approximately $6.1 million for the three months ended June 30, 2019, compared to an unrealized gain of $1.7 million for the three months ended June 30, 2018. The unfavorable $7.8 million change is attributable to changes in the fair value of our interest rate swaps caused by changes in forward LIBOR yield curves and reductions in notional amounts.

Realized Gain/(Loss) on Derivatives

Realized gain on derivatives was approximately $1.0 million for the three months ended June 30, 2019, compared to $0.8 million for the three months ended June 30, 2018. The favorable $0.2 million change is attributable to increases in floating LIBOR resulting in realized gains on interest rate swaps related to the $758 million debt financing facility that we entered into in March 2015 (as amended) with a group of banks and financial institutions.

Fleet

The following table sets forth certain information regarding our fleet as of August 1, 2019.






                                    Capacity                       Sister             
      
         ECO                                
         
         Charter


                               
     
       (Cbm)             Shipyard    Ships  Year Built       Vessel(1) 
          
            Employment 
       
         Expiration(2)




     
     Dorian VLGCs



     
     Captain Markos NL(3)          82,000   
       Hyundai      
     A              2006                   
          Time Charter(5)        
       Q4 2019



     
     Captain John NP(3)            82,000   
       Hyundai      
     A              2007                     
          Pool-TCO(6)          
       Q1 2020



     
     Captain Nicholas ML(3)        82,000   
       Hyundai      
     A              2008                       
          Pool(7)



     
     Comet                         84,000   
       Hyundai      
     B              2014   
       X           
          Time Charter(8)        
       Q3 2019



     
     Corsair(3)                    84,000   
       Hyundai      
     B              2014   
       X               
          Pool(7)



     
     Corvette(3)(4)                84,000   
       Hyundai      
     B              2015   
       X               
          Pool(7)



     
     Cougar                        84,000   
       Hyundai      
     B              2015   
       X               
          Pool(7)



     
     Concorde(3)(4)                84,000   
       Hyundai      
     B              2015   
       X           
          Time Charter(9)        
       Q1 2022



     
     Cobra                         84,000   
       Hyundai      
     B              2015   
       X               
          Pool(7)



     
     Continental                   84,000   
       Hyundai      
     B              2015   
       X               
          Pool(7)



     
     Constitution                  84,000   
       Hyundai      
     B              2015   
       X               
          Pool(7)



     
     Commodore                     84,000   
       Hyundai      
     B              2015   
       X               
          Pool(7)



     
     Cresques                      84,000   
       Daewoo       
     C              2015   
       X               
          Pool(7)



     
     Constellation                 84,000   
       Hyundai      
     B              2015   
       X               
          Pool(7)



     
     Cheyenne                      84,000   
       Hyundai      
     B              2015   
       X               
          Pool(7)



     
     Clermont                      84,000   
       Hyundai      
     B              2015   
       X               
          Pool(7)



     
     Cratis                        84,000   
       Daewoo       
     C              2015   
       X               
          Pool(7)



     
     Chaparral                     84,000   
       Hyundai      
     B              2015   
       X             
          Pool-TCO(6)          
       Q4 2019



     
     Copernicus                    84,000   
       Daewoo       
     C              2015   
       X               
          Pool(7)



     
     Commander                     84,000   
       Hyundai      
     B              2015   
       X          
          Time Charter(10)        
       Q4 2020



     
     Challenger                    84,000   
       Hyundai      
     B              2015   
       X             
          Pool-TCO(6)          
       Q4 2020



     
     Caravelle                     84,000   
       Hyundai      
     B              2016   
       X               
          Pool(7)




     
     
                Total         1,842,000





     
     Time chartered-in VLGC



     
     Laurel Prime(11)              83,305 
       Mitsubishi                      2018   
       X               
          Pool(7)


     
              (1)              Represents vessels with very low
                                   revolutions per minute,
                                   long?stroke, electronically
                                   controlled engines, larger
                                   propellers, advanced hull
                                   design, and low friction paint.


     
              (2)              Represents calendar year
                                   quarters.


     
              (3)              Operated pursuant to a bareboat
                                   chartering agreement.


     
              (4)              VLGC fitted with scrubber.


     
              (5)              Currently on time charter with
                                   an oil major that began in
                                   December 2014.


     
              (6)              "Pool-TCO" indicates that the
                                   vessel is operated in the
                                   Helios Pool on a time charter
                                   out to a third party and
                                   receives as charter hire a
                                   portion of the net revenues of
                                   the pool calculated according
                                   to a formula based on the
                                   vessel's pro rata performance
                                   in the pool.


     
              (7)              "Pool" indicates that the vessel
                                   operates in the Helios Pool on
                                   a voyage charter with a third
                                   party and receives as charter
                                   hire a portion of the net
                                   revenues of the pool calculated
                                   according to a formula based on
                                   the vessel's pro rata
                                   performance in the pool.


     
              (8)              Currently on time charter with
                                   an oil major that began in July
                                   2014.


     
              (9)              Currently on time charter with a
                                   major oil company that began in
                                   March 2019.



              (10)              Currently on a time charter with
                                   a major oil company that began
                                   in November 2015.



              (11)              Currently time chartered-in
                                   with an expiration during the
                                   first calendar quarter of 2020

Market Outlook & Update

For the second calendar quarter of 2019, the Baltic Index averaged $62 per metric ton, compared to an average of $30 per metric ton in the first calendar quarter. The Baltic VLGC Index began the quarter at $41 per metric ton, increasing to $78 per metric ton at quarter end. For the third calendar quarter of 2019 to date, the Baltic Index has averaged $75 per metric ton.

Year-to-date through July, U.S. LPG exports have grown year-over-year by 22% to 22.5 million tons and Middle East exports have grown on the same basis 3.5% to 22.6 million tons. For the first time, U.S. and Middle East volumes were equal. Our expectation is that the U.S. exports will grow faster than those from the Middle East. U.S. propane inventories continue to push towards the higher-end of their 5-year range, having reached 80 million barrels on July 26(th), 21.4% higher than last year, which was almost equal to the percentage increase in exports.

North American export capacity continues to expand, further supporting global LPG trade. Altagas' new Ridley Island terminal on the west coast of Canada is now exporting two cargoes per month, while Enterprise expects its LPG Marine Terminal expansion to be ready by the end of September 2019 followed by an even more substantial expansion by the third calendar quarter of 2020. Targa Resources announced an expansion project of 200 million barrels per day by next year, while Energy Transfer Partners announced scheduling changes for this summer to facilitate vessel loadings and increased refrigeration capacity for their Nederland terminal by September 2020. Sunoco's Marcus Hook terminal has maintained a strong loading schedule, exporting 9 VLGC cargoes in April, 10 in May, and 9 in June.

In April 2019, European and Asian benchmark propane prices climbed, while Mont Belvieu prices fell. Throughout the quarter, prices continued to fall in all three major regions, dropping below 50% of Brent in Northwestern Europe and the Far East. Despite a fall in crude prices and naphtha, propane remained a key feedstock for the petrochemical industry in the West as the propane-naphtha spread averaged around $130 per metric ton over the quarter.

In China, several new PDH plants are anticipated to start up in the second half of 2019 with potential LPG demand of 700,000 tons per annum per facility. In South Korea several steam crackers were down for maintenance at the beginning of the second calendar quarter of 2019, limiting import demand. However, with several cracker expansions, propane consumption in Korean steam crackers is similarly expected to rise in the latter half of the year.

With ballast water treatment regulations coming into effect this September and the IMO 2020 regulations at the beginning of 2020, the global fleet will be evolving with major equipment retrofitting. The global fleet currently contains 35 VLGCs that are 20 years of age or older, with a similar number of vessels in the orderbook. Given the significant investments required for compliance, we believe that owners of older tonnage may not find the investment proposition attractive and thus may consider scrapping. With a stable orderbook of approximately 12% of the global fleet, we believe that the market should remain relatively balanced.

The above summary is based on data derived from industry sources, and there can be no assurances that such trends will continue or that anticipated developments in freight rates, export volumes, the VLGC orderbook or other market indicators will materialize.

Seasonality

Liquefied gases are primarily used for industrial and domestic heating, as a chemical and refinery feedstock, as a transportation fuel and in agriculture. The LPG shipping market historically has been stronger in the spring and summer months in anticipation of increased consumption of propane and butane for heating during the winter months. In addition, unpredictable weather patterns in these months tend to disrupt vessel scheduling and the supply of certain commodities. Demand for our vessels therefore may be stronger in the quarters ending June 30 and September 30 and relatively weaker during the quarters ending December 31 and March 31, although 12-month time charter rates tend to smooth these short-term fluctuations and recent LPG shipping market activity has not yielded the expected seasonal results. To the extent any of our time charters expire during the typically weaker fiscal quarters ending December 31 and March 31, it may not be possible to re-charter our vessels at similar rates. As a result, we may have to accept lower rates or experience off-hire time for our vessels, which may adversely impact our business, financial condition and operating results.

Financial Information

The following table presents our selected financial data and other information for the periods presented:




                                                             Three months ended




     
                (in U.S. dollars, except fleet data)         June 30, 2019                         June 30, 2018




     
                Statement of Operations Data



     Revenues                                                                  $
             61,165,546                 $
             27,644,282



     Expenses



     Voyage expenses                                                                         339,114                               100,173



     Charter hire expenses                                                                 2,055,000



     Vessel operating expenses                                                            16,119,953                            16,685,457



     Depreciation and amortization                                                        16,266,421                            16,265,056



     General and administrative expenses                                                   6,735,835                             7,920,286



     Professional and legal fees related to the BW Proposal                                                                       483,000




     Total expenses                                                                       41,516,323                            41,453,972



     Other income-related parties                                                            623,283                               644,517




     Operating income/(loss)                                                              20,272,506                          (13,165,173)



     Other income/(expenses)



     Interest and finance costs                                                          (9,697,282)                         (10,374,281)



     Interest income                                                                         362,036                               460,973



     Unrealized gain/(loss) on derivatives                                               (6,070,789)                            1,707,616



     Realized gain/(loss) on derivatives                                                   1,032,995                               782,565



     Other gain/(loss), net                                                                  175,593                               (8,258)




     Total other income/(expenses), net                                                 (14,197,447)                          (7,431,385)




     Net income/(loss)                                                          $
             6,075,059               $
             (20,596,558)




     Earnings/(loss) per common share-basic                                                     0.11                                (0.38)



     Earnings/(loss) per common share-diluted                                        $
             0.11                     $
             (0.38)



     
                Other Financial Data



     Adjusted EBITDA(1)                                                        $
             38,382,383                  $
             5,185,136



     
                Fleet Data



     Calendar days(2)                                                                          2,002                                 2,002



     Time chartered-in days(3)                                                                    91



     Available days(4)                                                                         2,083                                 1,991



     Operating days(5)(8)                                                                      2,050                                 1,664



     Fleet utilization(6)(8)                                                                    98.4                                  83.6
                                                                                                    %                                    %



     
                Average Daily Results



     Time charter equivalent rate(7)(8)                                            $
             29,671                     $
             16,553



     Daily vessel operating expenses(9)                                             $
             8,052                      $
             8,334




                                                                                  As of                       As of



              
                (in U.S. dollars)                                 June 30, 2019                   March 31, 2019




              
                Balance Sheet Data



              Cash and cash equivalents                                                     $
        21,717,046             $
        30,838,684



              Restricted cash-non-current                                                         35,633,962                   35,633,962



              Total assets                                                                     1,619,105,623                1,625,370,017



              Total debt including current portion-net of deferred financing                     680,842,955                  696,090,786
    fees of $13.3.0 million and $14 million as of June 30, 2019
    and March 31, 2019, respectively.



              Total liabilities                                                                  700,025,761                  712,687,459



              Total shareholders' equity                                                   $
        919,079,862            $
        912,682,558



              (1)              Adjusted EBITDA is a non-U.S. GAAP
                                  financial measure and represents net
                                  income/(loss) before interest and
                                  finance costs, unrealized (gain)/
                                  loss on derivatives, realized loss
                                  on derivatives, gain on early
                                  extinguishment of debt, stock-based
                                  compensation expense, impairment,
                                  and depreciation and amortization
                                  and is used as a supplemental
                                  financial measure by management to
                                  assess our financial and operating
                                  performance. We believe that
                                  adjusted EBITDA assists our
                                  management and investors by
                                  increasing the comparability of our
                                  performance from period to period.
                                  This increased comparability is
                                  achieved by excluding the
                                  potentially disparate effects
                                  between periods of derivatives,
                                  interest and finance costs, gain on
                                  early extinguishment of debt, stock-
                                  based compensation expense,
                                  impairment, and depreciation and
                                  amortization expense, which items
                                  are affected by various and possibly
                                  changing financing methods, capital
                                  structure and historical cost basis
                                  and which items may significantly
                                  affect net income/(loss) between
                                  periods. We believe that including
                                  adjusted EBITDA as a financial and
                                  operating measure benefits investors
                                  in selecting between investing in us
                                  and other investment alternatives.




                                Adjusted EBITDA has certain
                                  limitations in use and should not be
                                  considered an alternative to net
                                  income/(loss), operating income,
                                  cash flow from operating activities
                                  or any other measure of financial
                                  performance presented in accordance
                                  with U.S. GAAP. Adjusted EBITDA
                                  excludes some, but not all, items
                                  that affect net income/(loss).
                                  Adjusted EBITDA as presented below
                                  may not be computed consistently
                                  with similarly titled measures of
                                  other companies and, therefore,
                                  might not be comparable with other
                                  companies.




                                 The following table sets forth a
                                  reconciliation of net income/(loss)
                                  to Adjusted EBITDA (unaudited) for
                                  the periods presented:


                                                               Three months ended




     
                (in U.S. dollars)        June 30, 2019                         June 30, 2018




     Net income/(loss)                                    $
       6,075,059                       $
        (20,596,558)



     Interest and finance costs                                9,697,282                               10,374,281



     Unrealized (gain)/loss on derivatives                     6,070,789                              (1,707,616)



     Realized (gain)/loss on derivatives                     (1,032,995)                               (782,565)



     Stock-based compensation expense                          1,305,827                                1,632,538



     Depreciation and amortization                            16,266,421                               16,265,056




     Adjusted EBITDA                                     $
       38,382,383                          $
        5,185,136



              (2)              We define calendar days as the total
                                  number of days in a period during
                                  which each vessel in our fleet was
                                  owned or operated pursuant to a
                                  bareboat charter. Calendar days are an
                                  indicator of the size of the fleet
                                  over a period and affect both the
                                  amount of revenues and the amount of
                                  expenses that are recorded during that
                                  period.





              (3)              We define time chartered-in days as
                                  the aggregate number of days in a
                                  period during which we time chartered-
                                  in vessels.





              (4)              We define available days as the sum of
                                  calendar days and time chartered-in
                                  days (collectively representing our
                                  commercially-managed vessels) less
                                  aggregate off hire days associated
                                  with scheduled maintenance, which
                                  include major repairs, drydockings,
                                  vessel upgrades or special or
                                  intermediate surveys. We use available
                                  days to measure the aggregate number
                                  of days in a period that our vessels
                                  should be capable of generating
                                  revenues.





              (5)              We define operating days as available
                                  days less the aggregate number of days
                                  that the commercially-managed vessels
                                  in our fleet are off?hire for any
                                  reason other than scheduled
                                  maintenance. We use operating days to
                                  measure the number of days in a period
                                  that our operating vessels are on hire
                                  (refer to 8 below).





              (6)              We calculate fleet utilization by
                                  dividing the number of operating days
                                  during a period by the number of
                                  available days during that period. An
                                  increase in non-scheduled off hire
                                  days would reduce our operating days,
                                  and, therefore, our fleet utilization.
                                  We use fleet utilization to measure
                                  our ability to efficiently find
                                  suitable employment for our vessels.





              (7)              Time charter equivalent rate, or TCE
                                  rate, is a non-U.S. GAAP measure of
                                  the average daily revenue performance
                                  of a vessel. TCE rate is a shipping
                                  industry performance measure used
                                  primarily to compare period?to?period
                                  changes in a shipping company's
                                  performance despite changes in the mix
                                  of charter types (such as time
                                  charters, voyage charters) under which
                                  the vessels may be employed between
                                  the periods. Our method of calculating
                                  TCE rate is to divide revenue net of
                                  voyage expenses by operating days for
                                  the relevant time period, which may
                                  not be calculated the same by other
                                  companies.




                                 The following table sets forth a
                                  reconciliation of revenues to TCE rate
                                  (unaudited) for the periods presented:


                                                            Three months ended




     
                (in U.S. dollars, except operating days)    June 30, 2019                    June 30, 2018




     
                Numerator:



     Revenues                                                                 $
        61,165,546               $
        27,644,282



     Voyage expenses                                                                 (339,114)                     (100,173)




     Time charter equivalent                                                  $
        60,826,432               $
        27,544,109






     
                Denominator:



     Operating days                                                                      2,050                          1,664




     
                TCE rate:



     Time charter equivalent rate                                                $
         29,671                  $
         16,553



              (8)              We determine operating days for each
                                  vessel based on the underlying
                                  vessel employment, including our
                                  vessels in the Helios Pool (the
                                  "Company Methodology"). If we were
                                  to calculate operating days for each
                                  vessel within the Helios Pool as a
                                  variable rate time charter (the
                                  "Alternate Methodology"), our
                                  operating days and fleet utilization
                                  would be increased with a
                                  corresponding reduction to our TCE
                                  rate. Operating data using both
                                  methodologies is as follows:


                                                     Three months ended



                                          June 30, 2019                        June 30, 2018



                   Company Methodology:



     Operating Days                                                     2,050                   1,664



     Fleet Utilization                                                   98.4                    83.6
                                                                             %                      %


      Time charter equivalent                                    $
         29,671               $
     16,553




                   Alternate Methodology:



     Operating Days                                                     2,083                   1,990



     Fleet Utilization                                                  100.0                    99.9
                                                                             %                      %


      Time charter equivalent                                    $
         29,201               $
     13,841


                                We believe that the Company
                                  Methodology using the underlying
                                  vessel employment provides more
                                  meaningful insight into market
                                  conditions and the performance of
                                  our vessels.





              (9)              Daily vessel operating expenses are
                                  calculated by dividing vessel
                                  operating expenses by calendar
                                  days for the relevant time period.




                                In addition to the results of
                                  operations presented in accordance
                                  with U.S. GAAP, we provide
                                  adjusted net income/(loss) and
                                  adjusted EPS. We believe that
                                  adjusted net oncome/(loss) and
                                  adjusted EPS are useful to
                                  investors in understanding our
                                  underlying performance and
                                  business trends.  Adjusted net
                                  income/(loss) and adjusted EPS
                                  are not a measurement of financial
                                  performance or liquidity under
                                  U.S. GAAP; therefore, these non-
                                  U.S. GAAP financial measures
                                  should not be considered as an
                                  alternative or substitute for U.S.
                                  GAAP. The following table
                                  reconciles net income/(loss) and
                                  EPS to adjusted net income/(loss)
                                  and adjusted EPS, respectively,
                                  for the periods presented:


                                                                             Three months ended




     
                (in U.S. dollars, except share data) June 30, 2019                           June 30, 2018




     Net income/(loss)                                                $
         6,075,059                       $
        (20,596,558)



     Unrealized (gain)/loss on derivatives                                   6,070,789                              (1,707,616)




     Adjusted net income/(loss)                                      $
         12,145,848                       $
        (22,304,174)






     Earnings/(loss) per common share-diluted                            $
           0.11                          $
           (0.38)



     Unrealized (gain)/loss on derivatives                                        0.11                                   (0.03)




     Adjusted earnings/(loss) per common share-diluted                   $
           0.22                          $
           (0.41)

Conference Call

A conference call to discuss the results will be held today, August 7, 2019 at 10:00 a.m. EDT. The conference call can be accessed live by dialing 1-877-407-9716, or for international callers, 1-201-493-6779, and requesting to be joined into the Dorian LPG call. A replay will be available at 1:00 p.m. EDT the same day and can be accessed by dialing 1-844-512-2921, or for international callers, 1-412-317-6671. The pass code for the replay is 13693282. The replay will be available until August 14, 2019, at 11:59 p.m. EDT.

A live webcast of the conference call will also be available under the investor relations section at www.dorianlpg.com.

About Dorian LPG Ltd.

Dorian LPG is a liquefied petroleum gas shipping company and a leading owner and operator of modern VLGCs. Dorian LPG's fleet currently consists of twenty-three modern VLGCs. Dorian LPG has offices in Stamford, Connecticut, USA; London, United Kingdom; Copenhagen, Denmark; and Athens, Greece.

Forward-Looking Statements

This press release contains "forward-looking statements." Statements that are predictive in nature, that depend upon or refer to future events or conditions, or that include words such as "expects," "anticipates," "intends," "plans," "believes," "estimates," "projects," "forecasts," "may," "will," "should" and similar expressions are forward-looking statements. These statements are not historical facts but instead represent only the Company's belief regarding future results, many of which, by their nature are inherently uncertain and outside of the Company's control. Actual results may differ, possibly materially, from those anticipated in these forward-looking statements. For more information about risks and uncertainties associated with Dorian LPG's business, please refer to the "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Risk Factors" sections of Dorian LPG's SEC filings, including, but not limited to, its annual report on Form 10-K and quarterly reports on Form 10-Q. The Company does not assume any obligation to update the information contained in this press release.

Contact Information

Ted Young; Chief Financial Officer: Tel.: +1 (203) 674-9900 or IR@dorianlpg.com
Source: Dorian LPG Ltd.

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SOURCE Dorian LPG Ltd.